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SBI Fixed Deposit Scheme: Major government bank State Bank of India (SBI) runs a variety of fixed deposit schemes for its customers. There are two limited time fixed deposit (FD) schemes, which offer higher interest compared to other FDs. The bank runs the V-Care Deposit Scheme for senior citizens and another is the Amrit Kalash Deposit Scheme, in which senior citizens as well as other retail investors can invest. Now both these schemes are going to close this month, which means less time is left to get good returns from the government bank. Let us know the interest rates, terms and other details of these two FDs, and also see whether investing in them is beneficial or not.
SBI V Care Deposit Scheme: What is the interest rate?
SBI runs this scheme (SBI Fixed Deposit Scheme) especially for senior citizens. With this, they can keep their income in a safe FD and earn additional interest on it. At present the bank is giving interest on it at the rate of 7.5 percent. Depositors below 60 years of age can also deposit money in this, but they will get interest at the rate of 6.5 percent. If we talk about tenure, then investment can be made for minimum 5 years and maximum 10 years. Another good thing is that you can also take a loan against this FD.
SBI Amrit Kalash Deposit Scheme: What is the interest rate?
The bank runs Amrit Kalash Deposit Scheme for a period of 400 days. On this you get annual return at the rate of 7.10 percent. If we look at the returns of similar schemes with a tenure of less than 1 year to 2 years, then it gives an interest of 6.80%. Whereas if senior citizens are investing in it then they get interest of 7.60 percent. You can also take a loan against this FD.
How to invest in SBI We Care and Amrit Kalash Deposit Scheme?
You can open an account in this FD by visiting any branch of SBI. Apart from this, investment can also be made through internet banking and YONO app. However, investments can be made in both these schemes only till March 31. By the way, SBI has already extended the last date of investment in these schemes, so this can happen this time. But no such update has come from the bank yet.
Should you invest in SBI We Care and Amrit Kalash Deposit Scheme?
Look, the simple matter comes down to interest rate and security. Keeping in mind the duration and interest of both these schemes, if you look at the FDs of other banks for the same period, then you can find out which bank's FD will give you more benefits.
SBI Amrit Kalash vs HDFC Bank vs ICICI Bank
If compared with big banks, Amrit Kalash is giving 7.60 percent return on 400 day FD. Whereas HDFC Bank is giving interest of 7.10 percent on FD of less than 1 year to 15 months. At the same time, ICICI Bank is offering interest at the rate of 7.20% on FDs of 390 days to less than 15 months. This rate is for senior citizens. If we talk about regular investors, the interest rates of these banks on the same tenure are 7.10% (SBI), 6.60% (HDFC) and 6.70% (ICICI) respectively.
SBI V CARE VS HDFC BANK VS ICICI BANK
If we compare V Care Scheme then SBI is offering 7.50% interest for the period of 5 to 10 years. At the same time, ICICI is offering the same rate on FDs ranging from 5 years, 1 day to 10 years. But HDFC is giving higher interest. It is offering rates up to 7.75% on FDs ranging from 5 years, 1 day to 10 years.
So in Amrit Kalash you are getting better offer from SBI, so here you can earn on 400 days FD with SBI. But in We Care you are getting more benefits with HDFC. Senior citizens are getting more interest here. However, if we look at the interest rate for other retail investors during the same period it is only 7%.
Higher returns in small finance bank
But along with this, let us also tell you that there are some small finance banks which are giving higher returns than these big banks. With regard to Amrit Kalash Yojana, Capital Small Finance Bank and North East Small Finance Bank are offering rates of 8.10% and 9.15% respectively on FDs with a tenure of 400 days. That means you are getting more returns here. However, it is clear that the credibility and strength of small finance banks have not increased as much as compared to big banks, so you can decide at your own discretion whether you will invest money in small finance banks for higher returns or not. However, you can invest here on FDs of up to 5 years with the confidence that you will get deposit insurance on amounts up to Rs 5 lakh.